.1 fou are considering buyingandin a nearby city has had one for two years. She shared her results, below: The Tree Pruning Company Income Statements for the year ended December 31, 2010 2009 Sales 75,000 62,000 Less: Cost of goods sold 37,000 30.000 Gross profit 38,000 32,000 Less: Operating costs 28,000 24.000 Earnings before interest and taxes (EBIT) 10,000 8.000 Less: Interest expense 3,000 5.000 Earnings before taxes 7.000 3,000 Less: Income tax expense 2,800 1,200 Net income $ 4.200 1.800 Required: (a) Prepare a horizontal and vertical analysis on the income statement. (b) Should you buy a franchise? Fogo 31 14 a +